|
on Small Business Management |
|
Issue of 2010‒08‒21
eleven papers chosen by Joao Carlos Correia Leitao University of Beira Interior and Technical University of Lisbon |
| By: | Spyros Arvanitis; Heinz Hollenstein (WIFO) |
| Abstract: | The aim of this paper is to investigate the differences between specific motives of R&D investment in foreign locations with respect to the factors influencing the likelihood of foreign R&D and to the impact of foreign presence on the parent firms' innovativeness and productivity. An econometric analysis of Swiss firm panel data shows, firstly, that factors related to firm-specific knowledge-oriented advantages are more important for explaining the likelihood of foreign R&D activities than factors reflecting disadvantages related to home location. Secondly, knowledge-oriented motives of foreign R&D are positively correlated to innovation performance of domestic firms, whereas market-oriented and resource-oriented strategies correlate positively with productivity. |
| Date: | 2010–07–13 |
| URL: | http://d.repec.org/n?u=RePEc:wfo:wpaper:y:2010:i:375&r=sbm |
| By: | Halkos, George |
| Abstract: | In this paper we examine the innovative performance of Greek firms in terms of the women participation in research and technological development. For this reason we rely on the final results of a research project on women in innovation, technology and science, based on 279 questionnaires selected on a two years time period (2004-2006). Concerning the female participation in innovations a number of variables are used, like the total number of women employees by age, by education level, by firm size and by sector, as well as women in product and in process innovations, their position in the firm (owner, manager) and finally equality in job enrichment, in salary, in education–training and in promotion. Apart of presenting the empirical results relying on the analysis of the data collected by the survey to the Greek enterprises, we use the collecting variables in an econometric formulation using logistic regression and extracting the associated probabilities for implementing innovations. For this reason, first the General Linear Model (GLIM) is introduced and statistical inference and estimation problems are discussed. Then the Logit Model is presented under the theoretical framework of the Generalized Linear Models (GLIM), while some theoretical inside is extended with a number of suggested propositions and theorems. |
| Keywords: | Innovation; Entrepreneurship; Competitiveness; Diversity |
| JEL: | C10 Q55 L26 O31 |
| Date: | 2010 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:24392&r=sbm |
| By: | Lambais, Guilherme B. R. |
| Abstract: | This paper examines the potential of the Metropolitan Region of Campinas (MRC) for becoming a technopolis. Located an hour from São Paulo, in Southeastern Brazil, the MRC has been internationally recognized as an important world technological center. This paper maps the economic and technological environment of the region and develops an analysis of the strengths, weaknesses, opportunities and threats in the MRC with respect to entrepreneurship and becoming a technopolis. We begin by looking at selected high-technology industry and service sectors as well as the infrastructure supporting technological innovation and entrepreneurship in the form of research institutes, a research university (Unicamp), support groups, and three incubators. We then discuss the results of two surveys of companies associated with Unicamp or one of the incubators to determine the reliance of these companies on the MRC infrastructure for financing and marketing to networking and legal assistance, as well as their policy recommendations for improving entrepreneurship in the region. We conclude that the region is attractive to many companies and has great potential for future success as a technopolis due to its high levels of both hard and smart infrastructure, the strength of support available from a variety of local institutions, and the high level of economic activity in potentially innovative industrial and service sectors. However, there are several ways that the university, incubators, and public policies could better support entrepreneurship in the MRC. Specifically, an increase in public and private partnerships as well as greater capitalization options for start-ups are key areas the region could change to provide support for greater diversification of the start-ups in the area and further development of the MRC as a technopolis. |
| Keywords: | technology-based start-ups; entrepreneurship; innovation; incubation; economic development; Campinas |
| JEL: | O18 O32 O31 |
| Date: | 2009–09 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:24347&r=sbm |
| By: | Roberta Piergiovanni (Istat-Ufficio Regionale per l’Emilia-Romagna); Enrico Santarelli (JRC-IPTS) |
| Abstract: | This paper provides evidence on the mechanisms influencing the patent output of a sample of biotechnology firms from the input of indirect knowledge acquired from capital expenditures and direct knowledge from in-house R&D. Statistical models of counts are used to analyse the relationship between patent applications and R&D investment and capital expenditures. It focuses on biotechnology in the period 2002-2007 and is based on a unique data set drawn from various sources including the EU Industrial R&D Investment Scoreboard, the European Patent Office (EPO), the US Patent and Trademark Office (USPTO), and the World Intellectual Property Organisation (WIPO/PCT). The statistical models employed in the paper are Poisson distribution generalisations with the actual distribution of patent counts fitting the negative binomial distribution and gamma distribution very well. Findings support the idea that capital expenditures – taken as equivalent to technological change embodied in new machinery and capital equipment - may also play a crucial role in the development of new patentable items from scientific companies. For EPO patents, this role appears even more important than that played by R&D investment. The overall picture emerging from our analysis of the determinants of patenting in biotechnology is that the innovation process involves a well balanced combination of inputs from both R&D and new machinery and capital equipment. |
| Keywords: | Patents, R&D, Capital expenditure, Poisson models, Biotechnology |
| JEL: | L25 L65 O34 |
| Date: | 2010–07 |
| URL: | http://d.repec.org/n?u=RePEc:ipt:wpaper:201006&r=sbm |
| By: | Harald Oberhofer (University of Salzburg) |
| Abstract: | Based on the empirical firm growth literature and on heterogeneous (microeconomic) adjustment models, this paper empirically investigates the impact of European industry fluctuations and domestic business cycles on the growth performance of European firms. Since the implementation of the Single Market program the EU 27 member countries share a common market. Accordingly, the European industry business cycle is expected to become a more influential predictor of European firms' behaviour at the expense of domestic fluctuations. Empirically, the results of a two-part model for a sample of European manufacturing firms reject this hypothesis. Additionally, subsidiaries of multinational enterprises constitute the most stable firm cohort throughout the observed business cycle. |
| Keywords: | Firm growth, industry dynamics, domestic business cycle, European integration, multinational enterprises, two-part model |
| Date: | 2010–07–19 |
| URL: | http://d.repec.org/n?u=RePEc:wfo:wpaper:y:2010:i:377&r=sbm |
| By: | Michael Fritsch (School of Economics and Business Administration, Friedrich-Schiller-University Jena); Luis F. Medrano (Friedrich Schiller University Jena, School of Economics and Business Administration) |
| Abstract: | We analyze the spatial diffusion of knowledge in laser technology in West Germany from 1960, when this technology began, until 2005. Laser technology research has been nearly exclusively conducted in regions that are home to a university with a physics or electrical engineering department, an indication of the science-based character of the technology. Early adoption of laser knowledge was especially prevalent in large agglomerations. While we cannot detect knowledge spillovers from adjacent regions, geographic proximity to the center of initial laser research was conducive to early adoption of laser research; however, the effect is small. The earlier a region embarked on this type of research, the higher the level of laser research later, indicating the accumulation of knowledge generated in previous periods. Our results highlight the role of a region's absorptive capacity for commencing and conducting research in a new technological field. In the case of laser technology, it was more the level of existing tacit knowledge than an interregional transfer of tacit knowledge that played an important role. |
| Keywords: | Innovation, regional innovation systems, knowledge, spatial diffusion, laser technology |
| JEL: | R11 O33 O52 |
| Date: | 2010–08–04 |
| URL: | http://d.repec.org/n?u=RePEc:jrp:jrpwrp:2010-048&r=sbm |
| By: | Abdelfatah Ichou |
| Abstract: | During the last decades, most developed countries have shown a remarcable increase in entrepreneurship rates. Recent research suggests that this increase is, for a considerable part, caused by an increase in the share of solo self-employed. Nowadays, for example, more than half of all Dutch business owners are solo self-employed. This raises the question which factors determine whether an entrepreneur becomes an employer or remains solo self-employed. A recent study by EIM investigates the decision of entrepreneurs whether or not to become an employer and the decision of employers to hire a certain number of employees. The first decision is examined by estimating duration models that model the duration of the time spent as solo entrepreneur before the transition to employer is made. The estimations are performed on a panel of Dutch start-ups in 1998, 1999 and 2000. We find that entrepreneurs who founded a firm to improve their work-life balance are less likely to make the transition to employership. The remaining factors that we found to influence the employer decision do this all in a positive way. These factors include whether or not the entrepreneur has the objective to maximize revenue, experience within the industry in which he operates, his entrepreneurial experience, selfefficacy, risk attitude and the time that is spent in the company. We also find that the likelihood of becoming a job creator is positively related to the business cycle. The second decision is examined by estimating count models that model the number of employees that are hired in the first year of employership. We find that higher levels of educational, entrepreneurial experience and self-efficacy of the entrepreneur lead to a greater firm size. Another factor that increases firm size is innovativeness. The moment in time at which the transition from soloentrepreneur to employer is made, also plays are role. For the first few years we find a negative relationship with firm age, indicating that the faster the switch is made, the more personnel will be employed. Also, for the employee decision we find a positive relation with the business cycle. |
| Date: | 2010–08–09 |
| URL: | http://d.repec.org/n?u=RePEc:eim:papers:h201018&r=sbm |
| By: | Michael Fritsch (School of Economics and Business Administration, Friedrich-Schiller-University Jena); Sebastian von Engelhardt (School of Economics and Business Administration, Friedrich-Schiller-University Jena) |
| Abstract: | We analyze the characteristics of new businesses in the German ICT industry, distinguishing them based on their choice between two IPR regimes: open source software (OSS) or closed source software (CSS). The share of new firms with an OSS-based business model has increased considerably over the last several years. OSS-based firms tend to be smaller (in terms of staff and capital) and experience less shortages of capital. Only older cohorts of OSS-intensive start-ups had more difficulty than their CSS counterparts in convincing potential financiers of their viability, indicating that OSS business models are now well established. We find no evidence that the lower entry barriers for OSS firms are particularly attractive to start-ups with low human capital endowment or to necessity-motivated entrepreneurs. |
| Keywords: | New business formation, institutions, open source, intellectual property rights, software industry |
| JEL: | D02 L17 L26 L86 |
| Date: | 2010–08–04 |
| URL: | http://d.repec.org/n?u=RePEc:jrp:jrpwrp:2010-049&r=sbm |
| By: | Brouwer, E.; Wiel, H.P. van der (Tilburg University, Center for Economic Research) |
| Abstract: | This paper examines the relationship between competition, innovation and productivity for the Netherlands. We use industry level data aggregated from micro data as well as moments from firm level data for the period 1996-2006. We match innovation data from Community Innovation Survey with accounting data to link innovative activities with performance at the industry level. We find strong evidence for a positive impact of competition on Total Factor Productivity (TFP) at the industry level. Competition directly increases TFP by reducing X-ineficiencies and removing inefficient forms from markets, but also through more innovation. Nonetheless, there exists an inverted U- curve between competition and innovation for the Netherlands, at least for manufacturing industries. Yet, our results indicate that a negative effect of competition on productivity through lower innovation expenditures arises only at very high levels of competition. |
| Keywords: | competition;innovation;profit elasticity;productivity |
| JEL: | D40 L16 O31 |
| Date: | 2010 |
| URL: | http://d.repec.org/n?u=RePEc:dgr:kubcen:201052&r=sbm |
| By: | Kox, Henk L.M.; Leeuwen, George van; Wiel, Henry van der |
| Abstract: | The paper investigates whether scale effects, market structure, and regulation determine the poor productivity performance of the European business services industry. We apply parametric and nonparametric methods to estimate the productivity frontier and subsequently explain the distance of firms to the productivity frontier by market characteristics, entry- and exit dynamics and national regulation. The frontier is assessed using detailed industry data panel for 13 EU countries. Our estimates suggest that most scale advantages are exhausted after reaching a size of 20 employees. This scale inefficiency is persistent over time and points to weak competitive selection. Market and regulation characteristics explain the persistence of X-inefficiency (sub-optimal productivity relative to the industry frontier). More entry and exit are favourable for productivity performance, while higher market concentration works out negatively. Regulatory differences also appear to explain part of the business services' productivity performance. In particular regulation-caused exit and labour reallocation costs have significant and large negative impacts on the process of competitive selection and hence on productivity performance. Overall we find that the most efficient scale in business services is close to 20 employees and that scale inefficiencies show a hump-shape pattern with strong potential scale economies for the smallest firms and diseconomies of scale for the largest firms. The smallest firms operate under competitive conditions, but they are too small to be efficient. And since this conclusion holds for about 95 out of every 100 European business services firms, this factor weighs heavily for the overall productivity performance of this industry. |
| Keywords: | productivity; frontier models; scale; industry dynamics; regulation; European Union; business services |
| JEL: | L8 C34 L1 R38 |
| Date: | 2010–07–01 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:24389&r=sbm |
| By: | Rosique, Francisco |
| Abstract: | Corporate Growth is a concept that has been widely treated in a specific way or as part of strategy theories, in definition and in econometric models and has also been studied in many different aspects and approaches. The author describes in depth the main variables affecting corporate growth and the underlying business processes. This empirical research has focused on Sales, Profit-Cash Flow, Risk, Created Shareholder Value, Market Value and Overall Performance econometric models. These panel data models are based on the 500 Companies of the Standard & Poor’s 500. The methodology used has been very strict in identifying exogenous variables, walking through the different alternative econometric models, discussing results, and, in the end, describing the practical implications in today’s business corporate management. We basically assume that the Functions/Departments act independently in the same company, many times with different objectives, and in this situation clear processes are key to clarify the situations, roles and responsibilities. We also assume that growth implies interactions among the different functions in a company and the CEO acts to lead and coach his immediate Directors as a referee of the key conflicts through his Operating Mechanism. The objective of this PhD Dissertation is to clarify the business priorities and identify the most relevant variables in every process leading to the highest efficiency in reaching a sustainable and profitable growth. It covers the lack of academic studies on the nature and specific driving factors of corporate growth and provides a working framework for Entrepreneurs and Management leading to the Company’s success. |
| Keywords: | Models with Panel Data; Capital; Produtivity; Firm choice; Growth; Investment; Corporate Finance; Firm objectives; Firm performance; Industry studies; Manufacturing; Primary products and construction; Services; Transportation and utilities; Business economics; Research and development |
| JEL: | L25 L90 O32 C33 G30 L80 L60 L21 D92 D24 M21 L70 |
| Date: | 2010–06–23 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:24336&r=sbm |